Expanding Dairy Market

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Even though the inherent potential that the dairy industry has for farmers has been exploited, there are avenues that have not been explored so far. Avenues that attract foreign companies and NRI's towards profitable investment!!


		Indian Dairy: Expanding Daily India’s modern dairy sector has expanded rapidly. From an insignificant 200,000 litres per day (lpd) of milk being processed in 1951, the organized sector is presently handling some 20 million lpd in over 400 dairy plants. Already, one of the world’s largest liquid milk plants is located in Delhi, handling over 800,000 litres of milk per day (Mother Dairy, Delhi). India's first automated dairy (capacity: 1 million lpd) -- Mother Dairy, Gandhinagar -- has been established at Gandhinagar near Ahmedabad, Gujarat, in Western India. It is owned by India’s biggest dairy cooperative group, Gujarat Cooperative Milk Marketing Federation (GCMMF) in Anand, with an annual turnover in excess of Rs 23 billion (US $500 million). Amul-III with its satellite dairies, with total installed capacity of 1.5 million lpd has also been commissioned. India's first vertical dairy (capacity: 400,000 lpd), owned by the Pradeshik Cooperative Dairy Federation(PCDF) has been commissioned at Noida, outside Delhi. The Winning Edge Three aspects of India’s modern dairy sector are particularly noteworthy.

	A vast market for dairy products is being built as disposable incomes increase. Its focus is the increasingly affluent middle class, numbering some 300 million — almost the population of the United States — which is confined to well-defined urban pockets and is easily accessible. Milk occupies pride of place as the most coveted food in the Indian diet, after wheat and rice. Milk-based sweets are a culinary delight in all homes throughout the year.
	The milk production is pre-dominantly rooted in the cooperative system. It's focus is on the small rural farmer having one or two cows/buffaloes, yielding 2-3 litres of milk per animal. This system is the basis of Operation Flood, the world’s largest dairy development program.
	The preferred dairy animal is the buffalo. Some 65 per cent of the world buffalo milk is produced in India. It has 30 per cent higher total solids compared to cow milk — an average of 16% vs. 12% for cow milk. Valued for its high fat content (7% vs. 3.5%), it is also high in calcium, phosphorus, lactose and proteins. Buffalo milk is the delight of the milk processor for its more profitable handling.

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Indian Dairy: Expanding Daily

The Winning Edge